R&D
How to Make Your R&D Tax Credit Defensible
Claiming the R&D tax credit can potentially help your business offset increased cash flow. However, simply completing IRS Form 6765,
Deb Roth, CPA
June 15, 2023
In the Architecture & Engineering industry, R&D is a cornerstone of innovation. Yet, understanding and claiming R&D tax credits can be a labyrinth. This detailed case study unpacks how Source Advisors navigated these complexities to secure substantial financial benefits for a structural engineering firm.
The subject of this case study is a structural engineering firm renowned for their avant-garde approaches in engineering techniques, including radar, lasers, and advanced modeling software like REVIT, BIM, and CAD. They have a strong focus on sustainability and are pioneers in ‘green construction.’
While the firm is at the forefront of innovation, their multiple simultaneous R&D initiatives required a considerable financial outlay. Despite their continuous R&D cycle, the company was unfamiliar with the process of converting these activities into claimable tax credits.
The firm engaged in a broad range of R&D activities—from Green Building Design and seismic analysis to stress factor evaluations. This involved numerous design iterations, data collection, testing, and simulation runs.
Source Advisors stepped in following a recommendation from the firm’s audit partner. A feasibility analysis was first conducted to give an estimate of the potential R&D tax credit benefits.
A preliminary calculation that estimated a tax credit benefit in the range of $200,000-$300,000.
Provided by a seasoned technical director to ensure the rigorous documentation of R&D activities.
In-depth seminars were conducted to educate the firm's team on R&D tax credits, making the process transparent and understandable.
With Source Advisors, the structural engineering firm not only identified but also successfully claimed substantial R&D tax credits, fueling further innovation.
Don’t miss out on the R&D tax credits you’re entitled to. Contact Source Advisors to turn your R&D investments into financial advantages.
Claiming the R&D tax credit can potentially help your business offset increased cash flow. However, simply completing IRS Form 6765,
What is a 481 a Adjustment? A 481(a) adjustment is required in order to prevent duplication or omission of income or deductions
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